This subproject is one of many research subprojects utilizing the resources provided by a Center grant funded by NIH/NCRR. The subproject and investigator (PI) may have received primary funding from another NIH source, and thus could be represented in other CRISP entries. The institution listed is for the Center, which is not necessarily the institution for the investigator. Since digital imaging is of significant importance in clinical diagnosis, teleradiology, the transmission of medical images of various modalities, such as computed tomography (CT) and magnetic resonance (MR), is a key part of most telemedicine systems. However, digital medical images require substantial amount of storage space. With the decreased cost of digital storage, although, the problem of archiving prohibitive amount of medical image data can be addressed, the low quality communication systems in remote areas makes effective teleradiology difficult. The communication systems in remote areas suffer from low transmission rate and are expensive to operate. Thus compression is necessary for effective transmission of medical images. To develop a segmentation-based image compression scheme for a particular medical imaging application with lossless compression of region of interest.